Four in five employers (80%) are planning to give pay increases next year, with an average raise of 3.8% expected, according to employers' group Ibec's latest HR update.

A further 54% are planning to increase their headcount, and there's a high level of competition for talent and particular skills, especially those with an IT background.

Six in 10 businesses now have an ESG or sustainability strategy, but social initiatives (46%) are taking priority as employers seek ways of better attracting and retaining talent.

Speaking at Ibec's HR leadership summit at Croke Park, Maeve McElwee, Ibec's executive director of employee relations, said the report spotlights the many challenges and opportunities facing HR practitioners and the broader business community. 

"Set against a background of continuous disruption in the new world of work and changing economic headwinds, the survey shows that Irish businesses are facing talent shortages resulting in greater focus being placed on staff retention initiatives including wage increases, additional benefits, additional leave, the provision of a variety of wellbeing programmes and greater accommodation of flexible, hybrid/remote working," she continued.

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The report also found that hybrid and flexible working as business operating models are now a priority when it comes to talent management, with employee expectations with regard to remote/hybrid working believed to have the greatest impact.

Diversity and inclusion also remain a priority for many organisations, with support most prevalent in larger organisations. Respondents are most likely to have gender balance and equal opportunity policies in place.

The survey, carried out by Amárach Research, was answered last month by 329 senior HR leaders, who shared their views on pay, resourcing and HR trends.

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